Will I still owe my student loan after bankruptcy?

No, if it has been seven years since you were last a student (this legislation came into effect in July, 2008). But your student loan cannot be discharged if it has been less than seven years—there is no wriggle room on this one in bankruptcy.
 
One of the major debt loads that Canadians in their 20’s carry is a student loan. The burden has gotten much heavier over the past decade, as tuition fees have risen to compensate for shrinking education funds to universities and colleges and the cost of housing rentals and text books has increased beyond the wages students can expect to earn at part-time and summer jobs.

Gone are the days when student loans carried no interest or low interest. The interest rates on student loans is now often higher than the same student might find with a more conventional bank loan, although someone in their teens or early twenties without full-time employment and very little credit history isn’t eligible for a bank loan large enough to finance going through post-secondary schooling, hence the need for the government student loan program.

Unfortunately, once students graduate and their loans become due, many are shocked by the high monthly payments required, especially as the entry level positions in their chosen profession may not pay enough to meet minimum living expenses and their student loan payment. They may start missing payments and go into default, or they may start using credit cards for cash advances and living expenses. They may find:

• That the bank or collection agencies are constantly calling and sending payment requests.
• They have to move back into their parents’ house. Even if this is an option, their parents’ location can make it difficult to find work in their profession.
• They are being denied car loans, a mortgage, loans or other forms of credit, especially the lower interest varieties, because of their student loan history.
• Any tax refund owed is diverted to the defaulted student loan.

That they feel depressed about the future, because of the crushing burden of debt that they face today.

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